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1. Introduction to the Engineering & Research Industry
On a global basis, spending on R&D is increasing rapidly.
In industrialized nations, R&D investment has risen from
about 1.5% of GDP in 1980 to more than 2.2% today. Large numbers
of university students around the globe are enrolled in engineering
and scientific disciplines—many of them focused on potentially
vast rewards if their research efforts become commercialized.
Global research collaboration is booming, as is patenting—it
is next to impossible for patent authorities in the U.S. to
keep up with demand. Globalization and cross-national collaboration
have such a dramatic effect on research and design that about
one-half of all patents granted in America list at least one
non-U.S. citizen as a coinventor. Major U.S. universities,
like the University of Texas and the University of Wisconsin,
are eager to patent their inventions and to reap the benefits
of commercialized research. For example, Stanford University
earned more than $43 million from licensed technologies during
2003 alone.
The United States continues to lead the world in terms of
total investment in research and development, at about $265
billion during 2005. Massive research outlays by the U.S.
Federal Government play a large part; its total investment
in R&D during 2005 is about $127 billion, including $74
billion for research related to national defense. Government
research dollars feed projects at universities throughout
the U.S. and at many types of private corporations.
California launched an interesting development in research
funding at the state level when voters there approved, in
November 2004, $3 billion in stem cell research funding. Other
states across the U.S. quickly began discussing the potential
of launching such initiatives of their own. The end result
may be heightened competition between tech-savvy states for
leading-edge research efforts, at both corporate and university
facilities.
Meanwhile, U.S. corporations continue to fund massive engineering
projects and research budgets of their own. Top research investors
among U.S. companies include Ford Motor Co., General Motors,
IBM, Johnson & Johnson, Microsoft and Intel. Engineering,
science, research and development provide large numbers of
well-paying jobs in America, with nearly 800,000 people employed
in engineering and drafting companies, 548,000 in R&D
companies and 144,300 in testing laboratories.
Rapidly growing sectors in U.S. research include alternative
energy, which will receive even more emphasis due to high
global demand for energy. The convergence of information technology,
biotechnology and nanotechnology is fueling the imaginations
and the research budgets of scientists and engineers. Likewise,
the convergence of information technology, entertainment and
telephony is booming. Great research emphasis is also placed
on defense/homeland security, transportation, telecommunications,
chips, computer hardware and computer software. Due to the
continued boom in construction, including residential, commercial
and governmental projects, building and infrastructure design
and engineering are running at high rates.
Companies know that they must invest in R&D in order to
stay competitive, but in many cases their R&D strategies
are evolving. One change is the way R&D funding is allocated.
Strategies are shifting to include more alliances and joint
ventures with other companies, more subsidiary spin-offs based
on established technologies, more contracts and cooperative
efforts with federal labs and projects, and higher grants
and projects of greater scope at the university level. Companies
are also looking for ways to leverage their investment to
get more bang for their bucks.
Historically, corporate America’s dollars were spent
at labs within the bounds of the U.S., but today, more and
more projects are going to company-owned and outsourced labs
overseas. The outsourcing and offshoring of research and engineering
projects are booming to say the least. Due to low costs and
large talent pools (including large numbers of new graduates
with engineering and scientific degrees), the nations of China
and India in particular are attracting more and more of the
research dollars invested by U.S. and European companies.
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